Correlation Between Kangxin New and Hangzhou Gaoxin
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By analyzing existing cross correlation between Kangxin New Materials and Hangzhou Gaoxin Rubber, you can compare the effects of market volatilities on Kangxin New and Hangzhou Gaoxin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kangxin New with a short position of Hangzhou Gaoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangxin New and Hangzhou Gaoxin.
Diversification Opportunities for Kangxin New and Hangzhou Gaoxin
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangxin and Hangzhou is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Kangxin New Materials and Hangzhou Gaoxin Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gaoxin Rubber and Kangxin New is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kangxin New Materials are associated (or correlated) with Hangzhou Gaoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gaoxin Rubber has no effect on the direction of Kangxin New i.e., Kangxin New and Hangzhou Gaoxin go up and down completely randomly.
Pair Corralation between Kangxin New and Hangzhou Gaoxin
Assuming the 90 days trading horizon Kangxin New Materials is expected to under-perform the Hangzhou Gaoxin. But the stock apears to be less risky and, when comparing its historical volatility, Kangxin New Materials is 1.21 times less risky than Hangzhou Gaoxin. The stock trades about 0.0 of its potential returns per unit of risk. The Hangzhou Gaoxin Rubber is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,034 in Hangzhou Gaoxin Rubber on August 29, 2024 and sell it today you would earn a total of 26.00 from holding Hangzhou Gaoxin Rubber or generate 2.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangxin New Materials vs. Hangzhou Gaoxin Rubber
Performance |
| Timeline |
| Kangxin New Materials |
| Hangzhou Gaoxin Rubber |
Kangxin New and Hangzhou Gaoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangxin New and Hangzhou Gaoxin
The main advantage of trading using opposite Kangxin New and Hangzhou Gaoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangxin New position performs unexpectedly, Hangzhou Gaoxin can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hangzhou Gaoxin will offset losses from the drop in Hangzhou Gaoxin's long position.| Kangxin New vs. Zijin Mining Group | Kangxin New vs. Wanhua Chemical Group | Kangxin New vs. Baoshan Iron Steel | Kangxin New vs. Shandong Gold Mining |
| Hangzhou Gaoxin vs. Zijin Mining Group | Hangzhou Gaoxin vs. Wanhua Chemical Group | Hangzhou Gaoxin vs. Baoshan Iron Steel | Hangzhou Gaoxin vs. Shandong Gold Mining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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